As a Director you are constantly trying to mitigate your business risk. You put processes and procedures in place to ensure that your business runs as smoothly as possible, with as little risk as possible.
But what about your personal liability?
Are you taking the necessary precautions to protect yourself and your staff?
In this blog post, we will discuss the personal liability around compliance and risk, and how you can protect yourself.
The role of the Compliance Officer can be underestimated
As a regulated entity, your business has a Compliance Officer whose role is to ensure the business complies with relevant laws and regulations.
There’s an argument to say the role of a Compliance Officer is THE most important in any business.
They have the unenviable task of staying abreast of constantly changing laws and regulation. This can include everything from developing compliance plans to conducting audits to investigating compliance violations.
It is a demanding job that requires a great deal of knowledge and attention to detail. Unfortunately, Compliance Officers often feel isolated and unsupported in their work.
While the Compliance Officer may not always be in the spotlight, their work is essential to ensuring that an organisation avoids potential legal problems. In the knowledge that if something is missed, they face potential personal liability along with the Board members.
This is a huge amount of responsibility for one person.
It’s no wonder that the role of a Compliance Officer is often seen as a poisoned chalice.
Help your Compliance Officer feel more supported
There are a few things you can do to help your Compliance Officer feel more supported. By taking these steps, you can create a strong support system for your Compliance Officer and help avoid compliance problems or personal liability down the road.
First, the Compliance Officer should have the full support of the Board. It is vital that the Board provide authority to the Compliance Officer, and they must be willing to listen to their advice.
Second, give them the resources they need to do their job effectively, including access to information and compliance-related software. They should also be given authority to make decisions and implement changes, when necessary.
Third, show your appreciation for their work by sharing positive feedback and offering opportunities for advancement, if there are any.
Lastly, provide them access to external guidance and support, for example a compliance healthcheck. This is a worthwhile tool that would help the Compliance Officer to carry out their responsibilities.
However, many businesses seem to miss this important opportunity.
Let’s delve deeper to examine why the support of external consultants will help you to create a supportive environment for Compliance Officers, empowering them be more effective in their roles.
What is a compliance healthcheck?
A compliance healthcheck is a review of an organisation’s compliance program. It assesses the effectiveness of the compliance program and identifies any areas of improvement.
A compliance healthcheck usually includes a review of compliance policies and procedures, as well as interviews with the Compliance Officer and other key stakeholders.
The findings can help your business strengthen its compliance program and avoid unwanted attention from the Isle of Man Financial Services Authority.
An expert review of your compliance program will improve your business’ compliance culture
A compliance program is essential for any organisation that wants to ensure compliance with regulations. However, compliance programs can be complex, and it can be difficult to identify all the areas where improvements are needed.
That’s where an expert compliance consultant can help.
An expert compliance consultant will have a deep understanding of compliance requirements and best practices. They will be able to review your compliance program and identify any areas of weakness.
In addition, they will be able to provide recommendations on how to improve your business’ overall compliance culture. As a result, having an expert review your compliance program can be an invaluable way to ensure that your business follows all applicable regulations.
Compliance healthcheck can enhance your risk management programme
A compliance expert can support the Compliance Officer to establish and maintain an effective compliance program. They can also assist with your business’ compliance risk management by identifying potential risks and hazards associated with your operations.
In addition, a compliance expert can help put in place measures to mitigate any risks identified.
By working with a compliance expert, your Compliance Officer can be rest assured that your business’ compliance program is up-to-date and effective. This helps to protect your business from potential compliance risks, including personal liability.
An external compliance healthcheck is an invaluable tool for a Compliance Officer
The Compliance Officer cannot be expected to know everything. By having an external compliance healthcheck, they will get an objective overview of how compliant their organisation is.
It can also help to assess whether the Compliance Officer has the necessary resources and support to do their job effectively.
Importantly, compliance healthchecks can help build confidence in the Compliance Officer’s ability to meet compliance requirements.
Compliance consultants like Impact Professional Services exist to support overwhelmed Compliance Officers
By having a regular compliance healthcheck, you can show your commitment to compliance and support for your Compliance Officer.
If you’re not already conducting compliance healthchecks on a regular basis, now is the time to start.
Contact us today to learn more about our compliance healthcheck services for financial and e-gaming businesses regulated by the Isle of Man.
Call 01624 820601.
Email [email protected].
